Short sales are all around us. Most likely there is someone in your neighborhood who sold their home within the past two years by completing a short payoff with their lender(s). So how are things looking when it comes to short sales in Irvine?
From October 1, 2010 through today, there were 9 homes that closed escrow within the price range of $400,000 and $600,000 which were labeled as short sales in the city of Irvine, according to the SoCal MLS.
Of these 9 homes, only 2 were single family homes. One was located in Northwood; the other in Colony neighborhood off Walnut. The rest were condos/townhomes - one in El Camino Real, one in Northpark, one in Northwood, one in Turtle Ridge, 2 in Woodbury, and one in West Irvine.
These were either 2 or 3 bedroom homes, all with 2-car garages. Average square footage was 1,483 sq ft; average price per square foot was $324.74; and average days on market was 124 days.
Here's the interesting part: the average final sales price was 94.17% of the original list price. That means that for a home that was originally listed for $550,000, it eventually sold for almost $518,000.
Now, that doesn't mean that buyers can expect that to happen on every short sale property. These are averages we're talking here.
For instance, the condo in Northwood sold for $419,000 after only being on the market for 12 days. The original list price was actually $399,900. This one actually closed escrow on November 4, 2010. Keep in mind that other homes in the neighborhood were selling in the $400,000′s, so this one actually might have been priced a bit lower from the beginning to attract more buyers. Also, note that although it was only on the market for 12 days, it was first listed on May 30, 2010.
When looking at the list dates for all 9 of these properties that closed escrow within the past month, the list dates for these properties range from August 2009 through late September 2010. This means that one of these short sales only took just over one month to eventually open and close escrow.
Is that possible???
In my experience, it certainly can happen. Just earlier this year I was able to get short sale approval (2 loans, same servicer) on one of my listings in only 10 business days...it was unheard of! And there was no HAFA program involved at that time. Short sales really CAN be "short!"
But wait...HAFA program? What's that?
Ah, another discussion for another day. For more info on HAFA, check out the official website here, which is part of the Making Home Affordable effort by the U.S. government.
So what does all this data ultimately mean? It means that in the city of Irvine, short sales indeed are being closed successfully. It means that for the most part, short sale properties are generally selling for under the original list price. It means that short sales can vary in duration from list date to close of escrow between a little over a month to a little over a year, though for these 9 homes, most of them took about 2-4 months to close escrow since the original list date.
Therefore, buyers need not shy away too much from short sale listings. Some may be able to open and close escrow faster than standard sales!
And for homeowners who are contemplating doing a short sale, it may not be as long of a process as you think.
For more information on buying or selling short sale properties, Irvine homes, or other real estate info, feel free to contact me.
(Based on information from the SoCal MLS for the period October 1, 2010 through November 10, 2010. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.)